Legal Concepts60) The state of Transas has set a maximum interest rate of 12 percent on loans. Matt borrows$10,000 from Tony to pay off a gambling debt. Both are residents of Transas. They sign acontract, which states that Matt would have to pay $1,500 as interest in one year to pay off theloan. Later Matt finds out the state usury limit and sues Tony. What is the nature of the contractbetween Matt and Tony?A) It is illegal as it violates gambling statutes.B) It is legal as both parties were competent when the contract was signed.C) The contract is void as it violates usury laws.D) The contract is void as it is a contract to commit a crime.

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